GDP Growth Despite All That's Happened...Really?

This comes as a surprise to many of us. I hope that NABE is right, but I wonder about this one. I looked for more of a ding in the US economy's armour in the last quarter of this year. Read on.

Despite turbulence from hurricanes and high energy prices, the economy is expected to log respectable growth this year and next, business economists say. The economy, as measured by gross domestic product, is projected to grow by 3.6 percent for all of 2005 and 3.3 percent in 2006, according to the National Association for Business Economics.

Against this backdrop of the economy's resiliency, the Federal Reserve is likely to continue boosting short-term interest rates well into next year to keep a lid on inflation, Tannenbaum said.

The new estimate for GDP growth in 2005 is slightly higher than a NABE projection released in September, while the fresh estimate for 2006 is slightly lower. GDP measures the value of all goods and services produced within the United States.

Read more about the NABE forecast here.